Health insurance, for health care a way to pay, guarantees to compensate insured’s medical expenses if leads to the hospital in case of meet an illness or accident.
These expenses range from doctor’s consultation fee to all hospital expenses, including medicine and surgery expenses.
The insured person benefits from health insurance in case of disease, accident injury, disability, and accidental death.
Insurance companies usually have tie-ups with hospitals, which leads to cashless treatment of the insured.
And if they don’t have such tie-ups, they pay all the medical expenses to the insured victim.
How does it work?
You have choices for selecting a plan from several health insurance policies. For keeping the plan, one has to pay every month to the company. This is a premium that demands payment every month; otherwise, one will lose the plan.
One passes through three stages during the whole process. These three stages are:
You pay all
After choosing a plan, you pay all the medical expenses on your own until the deductible is met. The deductible is the money you pay to the company before the company starts paying you.
You make co-insurance and co-pays
Once you have paid an amount equal to deductible, all your medical health expenses reduce co-insurance and co-pay. The company pays the rest of the amount. It happens until out-of-pocket-max is reached.
There is a fixed amount of every service like doctor’s fee or medicine’s cost in co-pay. While in co-insurance, a specific percentage you have to pay for a service.
Out-of-pocket-max is the amount you pay in addition to the premium cost in one year. It provides benefits in addition to premium services.
The company pays all
The insurance company starts paying all the health care expenses for the rest of the year after meeting the out-of-pocket-max.
Importance of health insurance
“Health is wealth” is a famous proverb. In the present era, it is challenging to maintain health due to medical expenses. In government hospitals, if payments are affordable, facilities are not acceptable.
While the private sector’s facilities are just like grapes are sour for a common man. The situation becomes more complicated when the money earner or bringer goes on the hospital’s bed.
To deal with this critical situation, companies offer insurance of health for yourself and your family.
By making a small payment to the company buying an annual premium can relieve your stress regarding health care expenses. Thus, the need of the hour is to do health insurance to become tension-free in a medical emergency.
Advantages of health insurance
Some advantages from a large number include:
Free treatment
Pre and post hospitalization expenses coverage
Pre and post hospitalization coverage to the insured person, the company provides. It depends on which plan of insurance one has purchased. Up to 60 days coverage, many companies give in its package.
Transportation dues
All the transportation fee is also the company has to pay. The transportation fee includes ambulance fee and the fee of whatever the mean of transportation necessary to use.
NCB
The bonus element is for the insured person if there is no claim from him during the previous year.
Hospital charges
Room rent, surgery charges, medicine charges, hospital fees, doctor fees, even all hospital’s dues are under the company’s responsibility.
Final words
Among all the insurance policies, health insurance is becoming a basic need. This is due to the unaffordable expenses of medical facilities, which works as significant stress. Even the government is in its favor and promotes it. Its working and benefits make it attractive.
